Matt Yglesias has a post up over at Slate.com on Ron Paul and Austrian Economics. I won’t get into the details of what he got right and wrong about his largely honest attempt to explain the Austrian School to Leftists (the word “crank” was only used once! A new high for the Left). Instead, what I’d like to do is hone in on this whopper:
Many of the original Austrians found their business cycle ideas discredited by the Great Depression, in which the bust was clearly not self-correcting [...]
Has Yglesias conveniently forgotten about Hoover’s attempts to prop up wages and his signing of the protectionist Smoot-Hawley tariff?
Why don’t Hoover’s policies get more attention by economists and journalists trying to understand and explain the Great Depression, or am I missing something?